Lease Contract

At the business law office of Michael Trevelline in Washington, DC we represent business owners and their commercial lease interests.

A lease is an important business contract with terms that can have significant impact on the expense and liability of a small business. You should always review the terms of a lease carefully, preferably with the counsel of your business lawyer, to avoid later frustration, cost and anxiety as you run your business.

Before signing a commercial lease, here are just a few of the topics that you should consider:

Lease commencement date and terms
Base rent and security deposit
Additional fees and taxes
Leased space improvements and expansion options
Parking availability, placement of signs and storage space
Lease extension, termination and subletting criteria
Building access, security, maintenance and cleaning
Building utilities and systems
Insurance
Dispute negotiation

Great thought should be put into the terms. Send this list to the prospective tenant/landlord and use it as a framework for negotiating.

1. Define and describe the premises
2. Define and describe the common areas that will have access to
3. Lease commencement date
4. Lease term
5. Base rent
6. Security deposit
7. Taxes and operating charges
8. Base rent escalations
9. Rent abatement
10. Improvements
11. First year space
12. Expansion option
13. Specifications for signs including placement and size
14. Parking
15. Moving allowance
16. Renovation allowance
17. Extension option
18. Early possession
19. Subletting assignment
20. Assign lease if sell the business
21. Storage space
22. Floor load
23. Overtime HVAC
24. Building access
25. Building security
26. Building maintenance and cleaning - who pays and how will the building be maintained
27. HVAC system
28. Who pays for what insurance
29. What building will be used for, i.e., who else can move in
30. Compliance with laws and regulations
31. Non-disturbance (so tenant will not be evicted if landlord goes broke)
32. Quiet enjoyment
33. Environmental conditions
34. Fiduciary duty to tenant
35. Disputes submitted to a mediator or arbitrator
36. Termination notices.